ESMA launches Call for Evidence on sustainability in suitability and product governance

ESMA has launched a CfE to gather industry feedback on integrating sustainability preferences into suitability assessment and product governance arrangements under MiFID II.
The objective of the CfE is to better understand how MiFID II requirements on sustainability are being implemented by firms and to gain insight into investor experiences and reactions to the inclusion of sustainability factors in investment advice and portfolio management services.
ESMA aims to achieve several goals through the CfE. Firstly, it seeks to develop a better understanding of how firms across the EU are applying MiFID II requirements and the challenges they face in doing so. Secondly, ESMA wants to gain insights into investor experiences and reactions regarding the incorporation of sustainability factors in investment services. Lastly, the CfE aims to collect information, views, and data on key trends related to the provision of sustainable investment products and services to retail clients.
ESMA has previously updated its Guidelines on suitability and product governance requirements to incorporate sustainability-related requirements for investment firms under MiFID II (eventid=20583). The Call for Evidence is part of ESMA’s ongoing efforts to monitor the application of MiFID II requirements and the related guidelines, in collaboration with NCAs.
The deadline for submitting contributions is 15 September 2023, and responses can be submitted online through the ESMA website.